If you sell your investments in stocks/equity Mutual Funds after 12 months, your investments would qualify for long-term capital gains tax which is zero at the moment.

If you sell your stocks/equity mutual fund investments before 12 months, you will have to pay a short-term capital gains tax at the rate of 15 per cent.

However, debt mutual funds qualify for long-term capital gains tax only if investments are held for three years.

The long-term capital gains tax on debt funds are 20 per cent with the indexation benefit. If debt mutual fund investments are sold before three years, the short-term gains are taxed as per the Income Tax slab applicable to the investor.

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